M&S to hand more than 9,200 workers bumper share payouts as festive sales surge

It comes after M&S said it starts 2024 with a “spring in our step” after sales jumped over Christmas and its food halls saw a record number of shoppers.

Like-for-like sales lifted 9.9 per cent across its food arm, while comparable store sales were 4.8 per cent higher in its clothing and home division in the quarter to December 30.

Some of the gains were driven by price inflation, but M&S said food sales by volume rose around 7 per cent and it increased prices by less than the wider market.

Chief executive Stuart Machin said: “We enter 2024 with a spring in our step, but clear eyed on the near-term challenges.”

The group added a note of caution over the outlook: “As we enter the new year and 2024-25, expectations for economic growth remain uncertain, with consumer and geopolitical risks.

“We also face additional cost increases from higher-than-anticipated wage and business rates-related cost inflation.

“Nevertheless, the strong Christmas trading performance provides confidence that the results for the year will be consistent with market expectations.”

Details of the payout for workers in its share save scheme come after the group enjoyed a strong performance on the stock market, boosted by improved trading under a turnaround that has been paying off.

M&S rejoined the FTSE 100 Index top tier of shares last August after a four-year hiatus thanks to big share gains.

Mr Machin said M&S plans to “up the pace” of its overhaul, ramping up its store changes and revamps, “doubling down” on measures to improve its supply chain and availability and to lower costs.

It is targeting a 1 per cent increase in market share across both businesses.

The firm said its saw strong demand for its “Remarkable” food value ranges over Christmas, with sales up around 18 per cent.

Across clothing and homeware, it said store sales rose 2 per cent, while online growth reached 10.9 per cent, adding it was left with less sale stock – down 6 per cent.

Charlie Huggins, Manager of the Quality Shares Portfolio at Wealth Club, commented: "M&S has sustained good momentum over the Christmas period, especially in food which delivered 7 per cent volume growth, making M&S the top performing grocer over the Christmas period.

“M&S also continued to gain share in clothing and home, supported by a good womenswear performance. This suggests the turnaround plan to revitalise the brand and reignite growth is very much on track.

“The clothing and home division has been a problem child for M&S for many years. The new strategy, launched last year, aims to improve brand perception and designs, reduce discounting and improve the online offering, while taking a knife to costs and instilling a more entrepreneurial culture. Early signs are this plan is resonating with consumers.”